Kingdom, Nigeria committed to oil market stability

Updated 25 February 2016
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Kingdom, Nigeria committed to oil market stability

RIYADH: Saudi and Nigerian leaders on Tuesday supported efforts to stabilize the oil market.
A consensus to freeze oil production to stabilize crude oil prices was one among several key bilateral and regional issues that were discussed during the talks between Custodian of the Two Holy Mosques King Salman and Nigerian President Muhammadu Buhari here at Al-Yamamah Palace.
King Salman also hosted a luncheon banquet in honor of President Buhari at the palace.
“The summit talks focused on multilateral cooperation within the framework of the Organization of Petroleum Exporting Countries (OPEC),” said an African diplomat, without giving his name.
He said that the Kingdom and Nigeria are important members of OPEC.
“There is a need to stabilize oil prices as the prices have slumped by more than 70 percent to near $30 a barrel over the past 18 months,” said the diplomat, while referring to the talks.
SPA reported that “the talks focused on prospects of cooperation between the two countries in various fields and the latest developments in Islamic and international arenas.”
The Saudi-Nigerian consultation touched on the potential output freeze, which aims to stabilize a market in which prices have fallen to their lowest levels in nearly 13 years.
Saudi Arabia and Nigeria are committed to a stable oil market and efforts to support a price rebound, Garba Shehu, a spokesman for President Buhari said in Lagos.
“The two leaders accepted the fact that their two economies are tied to oil and that all cannot be well with both countries when the world oil market is unstable,” said the spokesman
“They therefore committed themselves to doing all that is possible to stabilize the market and rebound the oil price,” he was quoted as saying in a Reuters report.
President Buhari is accompanied by Emmanuel Ibe Kachikwu, junior oil minister and head of the state-run oil firm.
Buhari, who started his week-long official visit to Saudi Arabia and Qatar on Monday from Riyadh, left later on Tuesday for Madinah.
The Nigerian president will travel to the holy city of Makkah for Umrah on Thursday. The talks and the luncheon banquet hosted by King Salman were also attended by Crown Prince Mohammed bin Naif, deputy premier and minister of interior; Prince Miteb bin Abdullah, National Guard minister; Ibrahim Al-Assaf; finance minister; and Adel Al-Toraifi, minister of culture and information.
The oil price crash has crippled some economies that depend heavily on oil sales for income, such as Nigeria and Venezuela, and even Gulf producers are shoring up their resources to withstand the painful revenue drop.
Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter.
Oil plays a large role in the Nigerian economy, accounting for 40 percent of the GDP and 80 percent of Nigerian government earnings.
Poorer OPEC members, including Nigeria, have been hard-hit by the price drop but even the wealthy Gulf states have been forced to adopt austerity measures to cope with falling oil revenues.
“Nigeria, of course, is likely to support such a freeze. So I wouldn’t be surprised to see them voice their support to the freeze agreed in Doha,” Abhishek Deshpande, lead oil market analyst at Natixis in London, told AFP.
Russia, which produces about 10.7 million barrels of oil a day, does not belong to the Organization of the Petroleum Exporting Countries (OPEC), in which Saudi Arabia is lead producer and Nigeria a smaller member.
Following his visit to Riyadh, President Buhari is set to fly to Doha to discuss oil price stability with Qatar’s ruler.


Saudi crown prince signs raft of cooperation agreements with China

Crown Prince Mohammed bin Salman signs an agreement between the Kingdom and China in Beijing on Friday. (SPA)
Updated 23 February 2019
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Saudi crown prince signs raft of cooperation agreements with China

  • the crown prince headed the Saudi delegation at the third session of the China-Saudi Arabia High-Level Joint Committee

BEIJING: Crown Prince Mohammed bin Salman on Friday met with Chinese Vice Premier Han Zheng to discuss ways of further developing relations between the Kingdom and China.

The meeting took place in the grand surroundings of the Great Hall of the People in the Chinese capital Beijing. After their talks, the crown prince headed the Saudi delegation at the third session of the China-Saudi Arabia High-Level Joint Committee which he co-chaired with Zheng.

Delegates at the meeting discussed moves to strengthen cooperation between the two countries on trade, investment, energy, culture and technology, as well as the coordination of political and security matters. The committee also reviewed plans for greater integration between China’s Belt and Road development strategy and the Saudi Vision 2030 reform program.

After agreeing on the minutes of the meeting, the Saudi royal and Zheng took part in the signing of a range of agreements, memorandums of understanding (MoU), investment projects and bilateral cooperation accords between the Kingdom and China:

The cooperation agreement in maritime transport between the Chinese and Saudi governments, signed by Saudi Minister of Commerce and Investment Majid Al-Qassabi and Chinese Minister of Transport Li Xiaopeng.

MoU between the Kingdom’s Ministry of Energy, Industry and Mineral Resources and the National Development and Reform Commission in China, signed by Saudi Energy Minister Khalid Al-Falih and Ning Jizhe, vice chairman of the National Development and Reform Commission.

MoU between the Chinese Ministry of Commerce and Saudi Ministry of Commerce and Investment to form a working group to facilitate trade, signed by Abdul Rahman Al-Harbi, the Kingdom’s deputy minister of commerce and investment, and Qian Keming, Chinese vice minister of commerce.

Loan agreement between the Saudi Fund for Development (SFD) and the Chinese Ministry of Finance to build and equip three hospitals in Yanbian city in Jilin Province, signed by Saudi Minister of State for Foreign Affairs Adel Al-Jubeir and the Chinese deputy finance minister.

Rehabilitation

Loan agreement between the SFD and Chinese Ministry of Finance to reconstruct and rehabilitate areas affected by earthquakes in Sichuan Province, signed by Al-Jubeir and the Chinese deputy finance minister.

Agreement between the Saudi Ministry of Interior and the Chinese Ministry of Public Security to cooperate in fighting cybercrime, signed Nasser Al-Dawood, undersecretary of the Saudi Ministry of Interior, and China’s deputy minister for public security.

MoU between the Public Investment Fund (PIF) of Saudi Arabia and China’s National Committee for energy to invest in renewable energy, signed by PIF head Yasir Al-Rumayyan, and the committee’s vice chairman.

Minutes of the meeting about cooperating in combating terrorism between the Saudi Presidency of State Security and Chinese Ministry of Public Security, signed by Lt. Gen. Abdullah Al-Qarni, deputy director-general of General Investigation for the Kingdom, and the Chinese minister.

MoU between the Saudi Authority for Intellectual Property and the Chinese National Committee for Intellectual Property Rights, signed by Dr. Abdul Aziz Al-Swailem, the authority’s executive chairman, and committee chairman Xin Xiangyu.

MoU to participate in investing in renewable energy projects, signed by the chairman of ACWA Power, Mohammed Abunayyan, and president of the Silk Road Fund, Wang Yanzhi.

Cooperation agreement for Saudi Aramco to acquire 9 percent of Chinese project Zhejiang Petrochemical, signed by Saudi Aramco CEO Amin Nasser and Xung Wi, mayor of Zhushan.

Agreement between Saudi Aramco with NORINCO Group and Panjin Sincen to develop a fully integrated refining and petrochemical complex, located in the city of Panjin in China’s Liaoning province, signed by Nasser and Tang Yijun, governor of Liaoning province and chairman of NORINCO.